The pair closed in NY Friday at $1.5995 after rate had managed to recover off NY session lows of $1.5943 to session highs of $1.6011 before it drifted off into the close. Friday’s expansion of the Japanese monetary base has boosted the dollar across the board with the fall out continuing into Asia Monday, which along with a weaker than forecast China Mfg PMI, acted to provide the dollar with another boost. Cable was marked down to around $1.5980 at the Asian open, though rate did manage to edge to $1.5990 as it attempted to close the technical gap. Thereafter dollar strength took over which pressed cable to extended lows of $1.5928 before rate recovered to $1.5975, settling between $1.5965/75 through to Europe. The move lower in cable was less pronounced than that seen in euro-dollar allowing euro-sterling to extend its corrective pullback lows to stg0.7811 (Asia range stg0.7811-35), the rate holding toward stg0.7820 into Europe. Manufacturing PMI data to be released through the morning, EZ begins with Spain at 0815GMT, through to EZ at 0900GMT. UK data at 0930GMT, the median expectation 51.4 vs 51.6 last. Dollar performance remains key to overall direction.
